EUR/USD picks up pace near 1.0550 ahead of ECB

The single currency is alternating gains with losses vs. the buck during the European morning, now taking EUR/USD to the area of 1.0530/40 following the opening bell in Euroland.

EUR/USD all eyes on the ECB

Spot is now struggling for direction while it keeps the trade in the lower end of the weekly range, looking to rebound from multi-day lows near 1.0530 seen earlier in the session.

USD-dynamics and French politics continue to drive the sentiment around EUR for the time being, although today’s press conference by President Mario Draghi could spark some fireworks following the ECB meeting.

The upside momentum in the greenback stays unabated this week, recently boosted by a solid print from US ADP report (298K exp.) and firmer yields in the US money markets.

Additionally, far-right candidate Marine Le Pen continues to lead the vote intention in the run up to the French elections in late April, although election polls see her losing in an hypothetical second round vs. either candidates Emmanuelle Macron or Francois Fillon.

Apart from the ECB meeting, the EU Summit will also kick in today, with Brexit and Greece on top of the agenda.

Across the pond, Challenger Job Cuts, Initial Claims and Export/Import Prices are due.

EUR/USD levels to watch

At the moment the pair is gaining 0.10% at 1.0551 facing the next up barrier at 1.0582 (20-day sma) followed by 1.0608 (55-day sma) and finally 1.0643 (high Mar.6). On the other hand, a break below 1.0525 (low Mar.9) would target 1.0513 (low Mar.1) en route to 1.0499 (low Mar.3).